Thailand’s parliament last Thursday approved of a law on the development of the Eastern Economic Corridor (EEC) – designed to improve the Thai position in ASEAN (Association of Southeast Asian Nations) economic zone. The National Legislative Assembly's approval is expected to bring about massive infrastructure investments into EEC project.
The EEC consists of three eastern provinces of Thailand – Chonburi, Rayong, and Chanchoengsao – just next to the coast of the Gulf of Thailand. The EEC expects investments of 300 billion baht ($9.7 billion) in the first year, mostly through foreign direct investments.
The government has identified four core areas essential to making the EEC a renowned economic zone: (1) increased and improved infrastructure; (2) business, industrial clusters, and innovation hubs; (3) tourism and (4) the creation of new cities through smart urban planning.
The Eastern Economic Corridor (Photo: Royal Thai Embassy Twitter)
Development of the EEC will proceed in three phases. The first phase between 2017-2018 will involve both domestic and foreign investments in the EEC. The second phase between 2019-2021 will concentrate on transport development. The third phase from 2022 onwards will create sustainable development and bolster the infrastructure network to link neighboring countries.
The Thai government hopes to turn these provinces into hubs for technological manufacturing and services with strong connectivity to its ASEAN neighbors by land, sea and air.
Thai Prime Minister Prayut Chan-o-cha (Photo: Royal Thai Embassy Twitter)
The new law also provides tax breaks for investors in the EEC project, especially investments in hi-tech industries. It also enables investors to rent land for up to 99 years, a policy that was banned before.
The EEC project is one of the government’s key priorities under “Thailand 4.0” – a 20-year national strategy to create a high-technology economy driven by innovation and R&D. Many anticipate this project to be a momentum for Thailand’s development in the coming years.
By MSEAP Cyber Secretariat (mseap@assembly.go.kr)
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